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EricP, Lescor, Patrickq, Dustin and gang..
- Thread starter ChkitOut
- Start date
Quote from StarDust9182:
I think this is because many people have never stopped to ask who is giving them money when they trade. In a world where reportedly 95% fail, it is a big ego push to assume they are just "smarter than everyone else". If they went to a casino and were "smarter than everyone else" I think that the results would be different long term. And then there are those who don't want to see the truth because of its implications to their own lives.
Great post. I have given up convincing people what HFT is doing. Those that know, know and those that don't will find out soon enough. I think it is going to get much much worse yet BTW.
I think the reason there is no clampdown is that we will eventually find out that the central banks buying securities are using HFT to do it. There simply is no reason that regulators would stand by without powerful interests forcing them to stay silent. It's similar to congress having insider trading powers when we don't.
Great points. HFT has ruined it for a lot of retail trading. Stocks are much harder to trade on a daily basis. heck everything is harder on any time frame. The 6E and 6J move like zombies now. The CME just recently was practically defending HFTs' right to keep their operations obscure. It's all politicized now just like any other national issue. The representatives want to keep their insider trading and hedge fund perks intact after all. The big banks continue to get their free money and cycle the markets on all its HFT fueled pseudo-volume.
Have not been affected by HFT in equities, futures or options.
Just reading through this thread when I noticed a quote from Ericp:
"Also, for what it's worth, I'm referring to 3 cents per share traded, so 6 cents per round turn trade. For example, you buy 200 shares at $20, and sell those 200 shares at $20.06 => You have made a gross profit of $12.00 and have traded a total of 400 shares, or 3 cents per share traded. Obviously, commissions and various fees (SEC, ECN, etc) will lower this a bit further."
Why would you choose to define cps as half the difference between you buy price and sell price?
Would the figure not make more sense if you used 200 shares?
"Also, for what it's worth, I'm referring to 3 cents per share traded, so 6 cents per round turn trade. For example, you buy 200 shares at $20, and sell those 200 shares at $20.06 => You have made a gross profit of $12.00 and have traded a total of 400 shares, or 3 cents per share traded. Obviously, commissions and various fees (SEC, ECN, etc) will lower this a bit further."
Why would you choose to define cps as half the difference between you buy price and sell price?
Would the figure not make more sense if you used 200 shares?
Just reading through this thread when I noticed a quote from Ericp:
"Also, for what it's worth, I'm referring to 3 cents per share traded, so 6 cents per round turn trade. For example, you buy 200 shares at $20, and sell those 200 shares at $20.06 => You have made a gross profit of $12.00 and have traded a total of 400 shares, or 3 cents per share traded. Obviously, commissions and various fees (SEC, ECN, etc) will lower this a bit further."
Why would you choose to define cps as half the difference between you buy price and sell price?
Would the figure not make more sense if you used 200 shares?
I'll hazard a guess here, unlike in futures where comms are typically quoted as RT and the example would be 200 contracts, with shares it is per transaction, so in his example you have actually traded 400 shares.
I don't look at it this way though, I think in trades and percentages, and would book the example as a 200 share trade opened and closed with a profit of 6cps and comms etc amalgamated.
Think in terms of a whole day. If you make $500 after trading 100k shares, you made a half cent per share (500/100000). This is an important stat if you know your costs, which for most is around the half cent mark.
By "costs", do you mean commission?